Everyday Loans for Everyday Life



Credit scoring explained

What is credit scoring?

As well as asking you for details of your income, employment and residential status, we use information from credit reference agencies to assess how well you have handled your credit in the past. This helps us assess the risk we are taking when deciding to lend money. Each lender may use a slightly different method for working out a credit score, but the basic information they use is the same. A high credit score represents a low risk to the lender, a low score is a high risk. Lenders set a minimum score above which they will generally agree to accept your application in principle. If your score does not reach this level, they may not.

What can you do to improve your credit score?

There are several things you can do to improve your credit score and we’ve included some hints and tips below. These are by no means guaranteed or a definitive list but should help your credit position. This means that you should find it easier to obtain credit in the future.

Keep all of your credit commitments up-to-date

Even the smallest missed payment on any credit account can cause your credit score to deteriorate.

Limit the number of credit searches on your file

The more credit applications you make to different lenders, the more your credit score will be affected. Lenders may think you are a riskier applicant if they can see you have been applying for lots of credit. Some lenders use Quotation Searching or Soft Searching when performing credit checks. These types of searches will not be visible to other lenders, where as the more common Credit Search will be.

Don’t exceed your limit on any credit cards

Also, if you can avoid going too close to the limit on your credit cards, this can also help.

Ensure you are on the electoral roll at your current address

Lenders will use electoral roll information to confirm your current address

What is a Credit Reference Agency?

Credit reference agencies are commercial companies which compile reporting data from many sources and create a credit file that reflects your personal credit history. Lenders then use this information to assess applications for credit.

What information do they have?

Agencies hold personal information taken from previous credit applications. This includes your name, date of birth, current and recent addresses. The main part of your credit report is your credit history. This lists your credit accounts, the date they were opened, the credit limit or loan amount, and whether you have missed any payments. Agencies will also have information on any loan balances. Additionally if you have applied for loans with lenders that use Credit Searches as oppose to Soft Searches/Quotation Searches, these references will also be visible on your credit file. Read more about Soft Search/Quotation Searches. Agencies also record a credit search every time your credit report is looked at, for instance when you apply for a loan or buy something on finance. These searches stay on your credit report for up to two years. Everyday Loans cares more about your credit future than your past. We are here to help with all your borrowing needs. If you have any queries regarding the information in this leaflet, please call or pop into your local branch and they will be happy to sit down and talk things through with you.

At Everyday Loans, the credit reference agency we use is Equifax and the details to contact them are below.

Equifax Plc

Credit File Advice Centre

PO Box 1140, Bradford BD1 5US


A copy of the information a Credit Reference Agency holds about you is available by accessing their website or writing to the address above enclosing a £2.00 fee, and quoting your full name, address, date of birth and all addresses you have resided at during the last 6 years.